CFO David M. Denton said "this substantial increase reflects our solid financial performance, our optimism with respect to future growth and our very significant cash-generation capabilities." He added that CVS is committed to using its free cash flow (estimated to grow by $2 billion a year) to enhance total returns for shareholders via high-return strategic investments, payout hikes and stock buybacks. The company has been disbursing dividends since 1916.

The nation's No. 1 provider of prescriptions, CVS Caremark's pharmacy benefit-management business, says division president Per Lofberg, has turned around. It now boasts a 97% client renewal rate and $9.3 billion in net new business for 2011, mostly attributable to a contract with health insurer Aetna. CVS also is poised to profit from drug spending for Medicare-eligible people, which is expected to grow an average of 8.5% annually from now to 2020.

The company previously forecast average annual revenue growth overall of 8% to 11% during the next five years and 7% to 9% average annual adjusted earnings-per-share growth from continuing operations.

Traded on the Big Board, CVS Caremark changes hands not far from its 52-week high of 37.82. It yields 1.44%.

THE WORLD'S LARGEST PAPER and forest-products company,
International PaperIP 0.8426374552348852%International Paper Co.U.S.: NYSEUSD47.87
0.40.8426374552348852%
/Date(1438376628751-0500)/
Volume (Delayed 15m)
:
2680261AFTER HOURSUSD47.87
%
Volume (Delayed 15m)
:
77029
P/E Ratio
19.699588477366255Market Cap
20242594839.7733
Dividend Yield
3.342385627741801% Rev. per Employee
400431More quote details and news »IPinYour ValueYour ChangeShort position
(IP) flexed its turnaround muscle last Tuesday by sweetening its quarterly common dividend a hefty 50%, to 12.5 cents a share from 8.75 cents. It was the Memphis-based company's second enhancement in less than a year (Speaking of Dividends, Barron's, May 3, 2010). In March 2009, IP slashed its quarterly to 2.5 cents from 25 cents, a move that gave it $400 million of debt-reduction capability.

"This second…increase reflects our intent to restore our dividend to pre-recession levels," said CEO John V. Faraci, adding that IP now is "a much stronger company, and we remain committed to creating sustainable returns for our shareholders." Uninterrupted dividends date back to 1946.

Standard & Poor's believes volume in the industrial and consumer-packaging businesses should improve along with renewed economic strength, and prices should rise significantly. Demand for printing paper is likely to be helped by replenishment of depleted inventories.

Yielding 2.75%, IP trades on the New York Stock Exchange near its 52-week high of 29.25.

SOME 70% OF REAL-ESTATE investment trusts cut or eliminated dividends during the financial meltdown, as the value of commercial real estate plunged. But a number of REIT sectors began reversing course in early 2009 ("Up, Up and Away," Barron's, Jan. 3). In 2010, the equity-market capitalization of the U.S. REIT industry (which, by the way, turned 50 last year) surged 44%, to $389 billion from $271 billion at year-end 2009, but still 11% below 2006's peak $438 billion.

During the recession, REITs got some relief from the Internal Revenue Service, which ruled that, to conserve cash, companies could pay as much as 90% of their dividends through 2011 in common stock. Industry stalwart
Vornado Realty TrustVNO 1.1614642746033392%Vornado Realty TrustU.S.: NYSEUSD97.55
1.121.1614642746033392%
/Date(1438376793934-0500)/
Volume (Delayed 15m)
:
1062121AFTER HOURSUSD97.55
%
Volume (Delayed 15m)
:
22195
P/E Ratio
66.53253307870686Market Cap
18366031236.3373
Dividend Yield
2.583290620194772% Rev. per Employee
585510More quote details and news »VNOinYour ValueYour ChangeShort position
(VNO) reverted to all cash a year ago and last Wednesday boosted its quarterly common payout to 69 cents a share from 65 cents, for a 3.23% yield. Dividends have been paid since 1990. The Big Board shares were recently quoted at 85, off a half-dozen points from their 52-week high.